Question

stock sales - Turbo Tax telling me to mail in more detail??

Forum|Forum|3 years ago
February 15, 2023
2 replies
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I have entered various stock sales on the "Capital Asset Sales Worksheet" (all of which have been reported to the IRS to include the stock cost basis) and there is a box at the bottom of the form that is checked that indicates "Taxpayer must mail in a statement with more details". Is this a new requirement? What causes this box to get checked?

G

GeorgeM777

No, unless the manner in which you have entered these transactions has triggered a requirement to include a more detailed statement. Not sure why you had to report your stock sales on a Capital Asset Sales Worksheet. Generally, stock transactions are either uploaded into TurboTax or entered manually in the Investments and Savings section (TurboTax online) or the Investment Income section (TurboTax CD/download).

If the cost basis for the stock transactions at issue have all been reported to the IRS, and there are no other adjustments to make, you might consider reporting the transactions in summary fashion. You'll only need to enter the total sales proceeds, total cost basis, and sales category.

To report the stock transactions in summary fashion, in the Investment and Savings section, select Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B). As you move through the various screens, you will see the option to import your 1099-B or Enter a different way, select the latter. Select the investment type, and then after responding to some basic questions, you should see the option to enter Sales section totals. Thereafter, you can enter total proceeds and total cost basis.

In TurboTax CD/download, the process is essentially the same.

@davis45567

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M

Mike9241

2 situations I can think of. one is a wash sale for which the detail must be reported on form 8949. the other is multiple trades entered as one line on the 8949 even though proceeds and cost are reported to the IRS and there are no wash sales involved (these must be reported directly on schedule D lines 1a and 8a to avoid having to provide detail to the iRS.

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Turbotax doesn't properly import these types of trades - type A or D - no adjustment or wash sale

they get entered on the capital asset sales worksheet. what I had to do was to delete the import.

use the Form 1099-B worksheet to report those sales for which no detail was required then manually enter on capital asset sales worksheet those trades for which detail is required.